How Much Would it Cost to Start a Lingerie Business?

by Katie Jensen, Demand Media

Start a lingerie business on a shoestring budget -- perhaps that should be a bra strap budget -- or spend tens of thousands of dollars. Your costs depend on several factors, including whether you're making the lingerie, wholesaling or selling it at retail. Where you sell the lingerie, how much inventory and equipment is required, marketing costs and, of course, licensing all affect costs.

Location

A home-based lingerie business requires only a few boxes to store samples and a corner for your home office. The costs involved are minimal if there are any location costs at all. Opening a retail lingerie shop requires a first and last month lease payment, security deposit and signing a 12-month lease. Lease rates vary from a thousand dollars a month to several thousand. If your business doesn't succeed, you are obligated for the remainder of the lease. Kiosks, those free standing carts in the center aisles of shopping malls, are an alternative that doesn't require as much funding as a full size retail store. Costs vary depending on the city and mall. You might consider selling your lingerie through a website. If that's the case you'll need to pay for hosting, web design, domain registration, graphic design and copy. Costs range from a few hundred dollars to several thousand.

Inventory

A nightgown costs from less than $10 to over $100 depending on the material -- silk is expensive while polyester is cheap, decoration and embellishments. If you're in the custom lingerie business, say making wedding night lingerie, you won't have much in the way of inventory, since each gown is produced individually. If you sell lingerie on the party plan -- where guests gather at the hostess's home and the guests order from you -- you need samples and catalogs but you don't have to carry a full range of sizes and colors. Selling lingerie on the Web gives you time to order the lingerie from your wholesaler and have it delivered. The most costly alternative is selling lingerie from a retail store. You'll need a full range of colors and sizes, as well as a variety of different types of lingerie such as panties and bras, sleepwear, lounge wear, nightgowns, robes and pajamas.

Equipment

Making custom lingerie requires a commercial-grade sewing machine, fabrics, sequins, embroidery threads and appliques. A retail store requires the most in the way of equipment from display racks to point of sale terminals and software for tracking vendors, payments, sales and inventory. A computer and Internet connection is necessary to sell lingerie online. A business phone is always a good idea even if your business is home-based.

Marketing

Every business needs marketing strategies and those strategies cost money. Depending on your lingerie business you may need a brochure and cards to give to potential party hostesses, a brochure demonstrating your custom lingerie work or advertising for a retail shop. Costs range from less than $100 for business cards to several thousand dollars for advertising.

About the Author

Katie Jensen's first book was published in 2000. Since then she has written additional books as well as screenplays, website content and e-books. Rosehill holds a Master of Business Administration from Arizona State University. Her articles specialize in business and personal finance. Her passion includes cooking, eating and writing about food.

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